Sickets willRuben intends to sell his customers a special round-trip airline ticket package. He is able to purchase the package from the airline carrier for $170 each. The round tbe sold for $210 each and the airline intends to reimburse Ruben for any unsold ticket packages. Fixed costs include $5200 in advertising costs. How many tickes packages wiRuben need to sell in order to achieve $60,000 of operating income?O 130 packagesO 311 packagesO 1500 packagesO 1630 packages

The contribution margin is calculated as difference between selling price and variable cost per…

be sold for $210 each and the airline intends to reimburse Ruben for any unsold ocket packages Foxed costs include $5200 in advertising costs How Ruben need to sell in order to achieve $60,000 of operating income? O 130 packages O 311 packages O 1500 packages O 1630 packages ever for $170 each the round anschensw

be sold for $210 each and the airline intends to reimburse Ruben for any unsold ocket packages Foxed costs include $5200 in advertising costs How Ruben need to sell in order to achieve $60,000 of operating income? O 130 packages O 311 packages O 1500 packages O 1630 packages ever for $170 each the round anschensw

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 12EA: Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a...

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Sur Travel Company intends to sell its customers a special round-trip airline ticket package to Salalah. The Company will be able to purchase the package from Oman Air for OMR 150 each. The round-trip tickets will be sold for OMR 200 each and the airline intends to reimburse Sur Travel for any unsold ticket packages. Fixed costs for Sur Travel include OMR 10,000 in advertising costs.How many ticket packages will Sur Travel need to sell to break even? a. 29 packages b. 200 packages c. 50 packages d. 67 packages
6. Kristine is distributor of brass picture frames for P45. For 2022, she plans to purchase for P30 each and sell them for P45 each. Kristine's fixed costs are expected to be P240,000. Kristine's only other costs will be variable costs of P60 per shipment for preparing the invoice and delivery documents, organizing the delivery , and following up for collecting accounts receivable. The P60 cost will be incurred each time Kristine ships an order of picture frames, regardless of the number of frames in the order. Suppose Kristine sells 40,000 picture frames in 1,000 shipments in 2022, what is Kristine's operating income for 2022?
7. Kristine is distributor of brass picture frames for P45. For 2022, she plans to purchase for P30 each and sell them for P45 each. Kristine's fixed costs are expected to be P240,000. Kristine's only other costs will be variable costs of P60 per shipment for preparing the invoice and delivery documents, organizing the delivery , and following up for collecting accounts receivable. The P60 cost will be incurred each time Kristine ships an order of picture frames, regardless of the number of frames in the order. Suppose Kristine sells 40,000 frames in 800 shipments in 2022, What is the Kristine's operating income for 2022?
8. Kristine is distributor of brass picture frames for P45. For 2022, she plans to purchase for P30 each and sell them for P45 each. Kristine's fixed costs are expected to be P240,000. Kristine's only other costs will be variable costs of P60 per shipment for preparing the invoice and delivery documents, organizing the delivery , and following up for collecting accounts receivable. The P60 cost will be incurred each time Kristine ships an order of picture frames, regardless of the number of frames in the order. Suppose Kristine anticipates making 500 shipments in 2022. How many picture frames must Kristine sell to break even in 2022?
The business manager of an RSO has a choice of purchasing T-shirts for 500 students from two suppliers. Alpha T offers the shirt to be acquired at P300 each with print 500 pieces and silk screen cost of P1,000 for 500 pieces. If the RSO will buy less than 500 pieces, it will be charged at P315each. Beta T, another supplier offers the T-shirt at P187 each, charges printing at P10,000 at a higher level of printing technology for every 300 pieces, and P75/shirt for ink and labor. Record shows that sales come from 75% of the students buy T-shirts. If only 80% of the students are targeted to serve, which supplier will you choose? a) Alpha T b) Beta T c) Either of the two supplier d) none of the supplier
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you run a small airline that operates ten 30 seat airplane flights per day. For each flight, you can sell up to 32 tickets at $454 each. If more people show up that you have seats for, you need to pay $636 for each seat you don't have available. If you sell 32 tickets, the probability that exactly 32 people show up is 5% and exactly 31 people show up is 20%. If I sell 31 tickets, the probability that exactly 31 people show up is 10%. If I sell the profit-maximizing number of tickets for each flight, how much money would I expect to make (tick revenue - penalty) each day? Round your answer to the nearest dollar without the dollar sign.
Hoot Washington is the newly elected leader of the Republican Party. Media Publishers is negotiating to publish Hoot’s Manifesto, a new book that promises to be an instant best-seller. The fixed costs of producing and marketing the book will be $500,000. The variable costs of producing and marketing will be $4.00 per copy sold. These costs are before any payments to Hoot. Hoot negotiates an up-front payment of $3 million, plus a 15% royalty rate on the net sales price of each book. The net sales price is the listed bookstore price of $30, minus the margin paid to the bookstore to sell the book. The normal bookstore margin of 30% of the listed bookstore price is expected to apply. Required 1. Prepare a PV graph for Media Publishers. 2. How many copies must Media Publishers sell to (a) break even and (b) earn a target operating income of $2 million? 3. Examine the sensitivity of the breakeven point to the following changes: a. Decreasing the normal bookstore margin to 20% of the listed…
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Kristin is a distributor of bras picture frames. For 20X4, she plans to purchase for P30 each and sell them for P45 each. Kristin’s fixed costs are expected to be P 240,000. Kristin’s only other cost will be variable costs of P60 per shipment for preparing the invoice and delivery documents, organizing the delivery, and following up for collecting accounts receivable. The P60 cost will be incurred each time Kristin ships an order of picture frames, regardless of the number of frames in the order. Suppose Kristin sells 40,000 picture frames in 1,000 shipments in 20X4, what is the kristin’s operating income for 20X4? a. P 300,000 b. P 420,000 c. P 240,000 d. P 450,000
Curt Rugs is holding a 2-week carpet sale at Jacob's Club, a local warehouse store. Curt Rugs plans to sell carpets for $1000 each. The company will purchase the carpets from a local distributor for $400 each, with the privilege of returning any unsold units for a full refund. Jacob's Club has offered Curt Rugs two payment alternatives for the use of space. Option 1: A fixed payment of $17400 for the sale period Option 2: 20% of total revenues earned during the sale period. Assume Curt Rugs will incur no other costs. Calculate the breakeven point in units for (a) option 1 and (b) option 2. At what level of revenues will CurtRugs earn the same operating income under either option? For what range of unit sales will Curt Rugs prefer Option 1? For what range of unit sales will Curt Rugs prefer Option 2? Calculate the degree of operating leverage at sales of 87 units for the two rental options. Briefly explain and interpret your answer to the above calculation